Monopolistically Competitive Equilibrium: Sofi Lens, Inc., has enjoyed rapid growth in sales and high operating profits ort its innovative extended-wear soft contact lenses. However, the company faces potentially fierce competition from a host of new competitors as some important basic patents expire during the coming year. Unless the company is able to thwart such competition, severe downward pressure on prices and profit margins is anticipated.
Price ($)
Monthly Output (Million)
Total Revenue ($Million)
Marginal Revenue ($Million)
Total cost ($Million)
Marginal cost ($Million)
Average cost($Million)
Total profit ($Million)
A
B
C
D
E
F
G
H
20
0
0
19
1
12
18
2
27
17
3
42
16
4
58
15
5
75
14
6
84
13
7
92
12
8
96
11
9
99
10
10
105
A: Use Soft Lens' current price, output, and total cost data to complete the table
B: Comment upon the results
Monopolistically Competitive Equilibrium: Sofi Lens, Inc., has enjoyed rapid growth in sales and high operating profits ort its innovative extended-wear soft contact lenses. However, the company faces potentially fierce competition from a host of new competitors as some important basic patents expire during the coming year. Unless the company is able to thwart such competition, severe downward pressure on prices and profit margins is anticipated.
|
Price ($) |
Monthly Output (Million) |
Total Revenue ($Million) |
Marginal Revenue ($Million) |
Total cost ($Million) |
Marginal cost ($Million) |
Average cost($Million) |
Total profit ($Million) |
|
A |
B |
C |
D |
E |
F |
G |
H |
|
20 |
0 |
0 |
|||||
|
19 |
1 |
12 |
|||||
|
18 |
2 |
27 |
|||||
|
17 |
3 |
42 |
|||||
|
16 |
4 |
58 |
|||||
|
15 |
5 |
75 |
|||||
|
14 |
6 |
84 |
|||||
|
13 |
7 |
92 |
|||||
|
12 |
8 |
96 |
|||||
|
11 |
9 |
99 |
|||||
|
10 |
10 |
105 |
A: Use Soft Lens' current price, output, and total cost data to complete the table
B: Comment upon the results
